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During the Reconstruction Era, several conflicting land claims reached the U. Congress and resulted in an April 24, 1876, Supreme Court ruling that the land title of Hot Springs belonged to the federal government. To deal with the situation, Congress formed the Hot Springs Commission to lay out streets in the town of Hot Springs, deal with land claims, define property lines, condemn buildings illegally on the permanent reservation (now the national park) and define a process for claimants to purchase land.
By 1873 six bathhouses and 24 hotels and boardinghouses stood near the springs.
In 1874, Joseph Reynolds announced his decision to construct a narrow-gauge railroad from Malvern to Hot Springs; completion in 1875 resulted in the growth of visitation to the springs. Fordyce and two other entrepreneurs financed the construction of the first luxury hotel in the area, the first Arlington Hotel, which opened in 1875.
Incorporated January 10, 1851, the city has been home to Major League Baseball spring training, illegal gambling, speakeasies and gangsters such as Al Capone, horse racing at Oaklawn Park, the Army and Navy Hospital, and 42nd President Bill Clinton.
One of the largest Pentecostal denominations in the United States, the Assemblies of God, traces its beginnings to Hot Springs.
After Arkansas became its own territory in 1819, the Arkansas Territorial Legislature requested in 1820 that the springs and adjoining mountains be set aside as a federal reservation.